FEATURED ARTICLES ABOUT FINANCIAL ADVICE - PAGE 3

By Uma Shashikant At a recent seminar, the vexed question of whether investors are willing to pay for financial advice, came up. A model, where producers pay commissions to distributors selling their products, has been abused in the past, and regulators across the world are trying to disband it. Instead, financial advisers have been asked to go to the investor and offer specific services for managing their money, and take fees for doing...

this year's budget is a path-breaking one. path-breaking in the sense that it reorients the purpose of investing. by taking away tax concessions from many of the instruments in section 88, investing has a new purpose, of achieving a particular aim. in this new scenario, insurance is to be viewed as a financial instrument, which gives protection. returns from insurance should now be of secondary importance as compared to the level of protection offered. if capital appreciation is desired equity mutual funds are the instruments of choice.

NFO WorldGroup Survey discovers nearly a quarter of affluent investors are closing their books on financial advisors, a 5 per cent increase over 2001. Full-service brokers have got a "D" grade from America's wealthiest investors. "No advice is the best advice," is the message that nearly a quarter of America's wealthiest investors are telling the brokerage and banking community, says a new study from NFO WorldGroup, one of the world's leading providers of research-based marketing information and counsel.

There isn't much wrong with the Jains' portfolio, especially at first glance. A couple in their early 40s, they have taken the time-tested route to wealth creation-real estate, debt and gold, with a sprinkling of equity. They have invested only 4% of their portfolio in equity , while debt makes up for 62% and gold constitutes 19%. In most cases, this structure is likely to work with proper financial advice, especially if the goals have to be achieved over the long term.

MUMBAI: Swiss financial services group Credit Suisse is trying a new beginning in India. It has just opened a financial consultancy and advisory office here to target high net worth individuals (HNIs). Credit Suisse group's operations in India through Credit Suisse First Boston Securities (CSFB) had taken a hit after the Sebi suspended the local arm from the capital market for two years from April 18, '01, for manipulating stock prices. It also suspended the registration of the foreign broking firm for three months for involvement in synchronised transactions with Ketan Parekh entities.

Indian investors continue to have a high degree of confidence in the local economy, and are in favor of keeping their investment money close to home, a Franklin Templeton global poll has found. In its annual global survey conducted earlier this year, the Franklin Templeton Global Investor Sentiment Survey polled more than 20,000 individuals in 19 countries including India that represent 70 percent of the world's GDP. The survey provides a unique snapshot of global sentiment and attitudes at a critical juncture in the market cycle.

What's in a title when it comes to selecting a financial advisor? There are now more than 90 designations conferred by 72 associations. Many of these certifications are little more than correspondence courses while others ensure that the professional has studied and practised financial planning for years. How do you separate the cream from the crud? It isn't easy with so many titles starting with "certified", "accredited" or "chartered". It can be an alphabet soup of deception. After the US Securities and Exchange Commission's (SEC)

By: Uma Shashikant There is little doubt in everybody's mind that advisers and distributors of financial products should be subject to regulatory supervision. Financial products are promises about future cash flows, which are subject to risk and mostly come without guarantees. Those who advise investors to buy or distribute it to them are primarily compensated by producers. This introduces an inherent conflict of interest since the investor might end up with unsuitable products.

What kind of financial advice can help a 46-year-old with questionable career prospects and huge debts on one gloved hand and significant assets on the other? It's time for Michael Jackson to think about it. With his legal problems behind him — at least for now — getting his monetary situation in order should sit high on his agenda. The King of Pop's outflow reportedly exceeds his inflow by $20 million to $30 million a year. His estimated assets total an impressive $500 million, including such jewels as the Beatles music-publishing catalog.

A net worth of Rs 1.23 crore would be considered high by most Indian investors. So, when Rajesh Prasad asked us for financial advice, it was evident that his aim was consolidation and diversification, not starting from scratch. While Prasads' strong financial foundation is admirable, their portfolio certainly needed to be reviewed. Typically, they had focused on real estate, letting equity take the backseat. "I have increased my equity investments gradually, but it will take some time to build a substantial equity portfolio," says 36-yearold Rajesh Prasad, who works with an MNC in Bangalore.